Economy

50 nations, including India sign 60-article agreement on China-led AIIB

50 founding nations including India have signed 60-article agreement of China-led multilateral Asian Infrastructure Investment Bank (AIIB).

Australia was the first country to sign the agreement and was followed by 49 other members. Indian Ambassador Ashok Kantha signed the agreement on behalf of country.

The 60-article agreement provides the legal framework for

  • Institution of AIIB.
  • Each member’s capital share and voting share.
  • Governance structure of AIIB.
  • Policy-making mechanism of AIIB.

Facts about Asian Infrastructure Investment Bank (AIIB)

  • Designed to finance infrastructure projects including energy, transport and infrastructure projects in Asia.
  • AIIB is seen as a rival to the World Bank and Asian Development Bank (ADB) which managed by most prominent countries like US, Japan and European etc.
  • Headquarters:Beijing. It will be operational by end of 2015.
  • Authorized capital: It will be of 100 billion US dollars. The initial subscribed capital will be around 50 billion US Dollar and the paid-in ratio will be 20 per cent.
  • Regional character of the Bank: Its regional members (Asian) will be the holding around 75 percent of shares i.e. they will be majority shareholders.
  • They have been allocated their capital share on quota basis i.e. based on their economic size.
  • Voting share: for each member country it is based on the size of their economy and not on authorised capital share to the Bank.
  • Largest shareholders: China is highest contributor to AIIB with 29.78 billion US dollars i.e. with a 30.34 percent stake in authorized capital.
  • China will have 26.06 per cent of the voting rights along with veto powers for certain key decisions.
  • India: second largest shareholder with 8.52 per cent stake and voting share of 7.5 per cent.
  • Russia: third largest shareholder with 6.66 stake and voting share of 5.92 per cent.

It should be noted that there are 57 founder-member countries AIIB. Seven countries were not able to sign this agreement as it was not ratified by their respective domestic authorities. The seven countries are Denmark, Malaysia, Kuwait, Holland, Philippines and South Africa and Thailand.

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Indian Railways, Indian Army among world’s biggest employers:  WEF Study

Two Indian organizations, India Army and Indian Railways are among the world’s biggest employers.

It was revealed in a research published by the World Economic Forum (WEF). Both organisations employ around 2.7 million people together.

Indian Railways was placed at 8th position with 1.4 million staff, while Indian Army was placed at 9th position with 1.3 million employees in the list of world’s biggest employers.

Top 10 world’s biggest employers are:

  • US department of Defense: It is the world’s biggest employer with over 3.2 million employees.
  • People’s Liberation Army (PLA): Chinese military is 2nd biggest employer with 2.3 million employees.
  • Walmart: US supermarket giant is 3rd biggest employer with 2.1 million workers.
  • McDonald’s: Fast food giant is the 4th biggest employer with 1.9 million employees.
  • National Health Service of UK: It is 5th biggest employer with 1.7 million.
  • China National Petroleum Corporation: It is 6th biggest employer with 1.6 million employees. It is Chinese state-run company.
  • State Grid Corporation of China: It is 7th biggest employer with 1.5 million employees.
  • Indian Railways: 1.4 million staff.
  • Indian Army: 1.3 million employees.
  • Hon Hai Precision Factory: It is known around world as Foxconn, a leading electronics manufacturer. It is placed at 10th position with 1.2 million employees.

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Rahul Agarwal appointed as Managing Director of Lenovo India

Technology major Lenovo has appointed Rahul Agarwal as the Managing Director (MD) of its India operations.

He succeeds Amar Babu who has been promoted to regional mandate as Chief operating Officer (COO), Asia Pacific and Chairman of Lenovo India.

Agarwal has rich work experience and was associated with Lenovo India since past 10 years. Over the last three years, he had led Lenovo’s commercial business and has managed various roles in sales and marketing in the past.

It should be noted that in 2014, Lenovo had held the third spot in the Indian PC segment with 15.8% market share. Currently the company is aiming to be among the top three in the Indian smartphone market.

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